Prosecutors allege that the funds vanished once the transfers were made.

'Glukhovtsev has been charged with fraud', the Russian interior ministry said.

Prosecutors said that Glukhovtsev siphoned the money into bank accounts in Montenegro which he controlled. He supplied clients with bogus reports confirming their ownership of businesses or properties that.

But investors never received the dividends they were promised, while the assets they were said to own were either registered to third parties, or did not exist, the Interior Ministry said.

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